NPP Manifesto Highlights (Promises) - On Energy and Petroleum
This post focuses on the NPP Manifesto's comments on energy and petroleum in Ghana. Note that these promises are directly from the manifesto.
Specific promises by the NPP on power supply include:
End “DUMSOR” in the short-term.
Reduce taxes on electricity tariffs to provide immediate relief to households and industry.
Conduct a technical audit on all power sector infrastructure and develop and implement a 10-year Power Sector Master Plan.
Ensure that the procurement of new power projects are executed primarily through PPP and IPP arrangements.
Develop and implement an Energy Sector Financial Restructuring and Recovery Plan, incorporating, a liquidity management mechanism for VRA, Electricity Company of Ghana (ECG), Northern Electricity Department (NED) and the BDCs
Leverage natural gas as a long term source central to the operation of the power sector. Consequently, the NPP will develop and implement a long-term LNG utilization programme.
The NPP will encourage and provide incentives to the private sector to develop aggressively potential sources of indigenous natural gas in addition to those from the Jubilee, TEN and SANKOFA oil/gas fields.
Create an environment of clear policies, rules and regulations, and provide adequate price incentives to attract private sector investments.
The NPP will prioritise and ensure actions to enhance and improve the capacity of the regulatory bodies, namely the Public Utilities Regulatory Commission (PURC) and Energy Commission (EC) to discharge their responsibilities in a more transparent, timely and efficient manner.
In 2007, the NPP government led a nationwide free distribution of 6 million compact fluorescent bulbs to consumers to replace incandescent bulbs, which led to a saving of about 200MW. We will implement similar initiatives involving LED bulbs and the introduction of Minimum Energy Performance Standards for electric motors and industrial equipment.
Ensure that energy is produced and used in an environmentally sound manner l. work within the framework of Ghana’s obligations under the Clean Development Mechanism (CDM), UN Framework on Climate Change (UNFCCC) and Conference of Parties 2015 (COP21)
Explore the possibility of geothermal and tidal wave energy.
Increase the proportion of renewable energy in the national generation mix by harnessing alternative energy options to ensure the expansion of low carbon energy in our economy.
Rapidly move to the adoption of a distributed solar energy solution for all government and public buildings to reduce demand on the national grid and reduce government expenditure on electricity.
Build solar parks in the northern part of the country. To achieve this, we will provide investment tax credits to owners of commercial, industrial, and utility scale solar photovoltaic (PV) systems to take a one-time tax credit of qualified installed costs.
Develop solar and wind mini-grids for irrigation and community water supply around the country through Public Private Partnerships (PPPs).
Ensure local supply of solar panels to meet the requirement of our policy proposals, by establishing a Renewable Energy Industrial Zone where the private sector will be supported to build factories for the production and assembling of the full components of solar power systems.
Improve transparency in the management of our oil and gas resources. Our commitment to passing the Right to Information Bill will further enhance transparency in the oil and gas sector.
Create an enabling environment through fiscal and non-fiscal measures to attract domestic and foreign investments in oil and gas exploration.
In collaboration with the private sector, accelerate oil exploration in the Voltaian Basin (Northern, Volta, Ashanti, Eastern, and Brong Ahafo), as well as in the Keta and Accra Basins to enhance Ghana’s potential for increasing oil and gas production and to build these areas into industrial growth poles.
Develop, in collaboration with the private sector, Western Region into a regional oil services hub with a first class port facility, as well as positioning it as an efficient centre for back-office support for the oil industry in the West African region, including the relocation of the headquarters of GNPC to the region.
Empower local firms to play progressively active roles in the oil and gas value chain through capacity development, financing and partnership support.
Aggressively invest in education and skills enhancement of Ghanaians to manage the oil and gas sector under an “Accelerated Oil Capacity Development Programme.
In collaboration with the private sector, create jobs in high impact areas such as fabrication and installation, manufacturing of equipment and parts and the construction of oil and gas infrastructure.
Restructure the Ghana National Petroleum Corporation to focus on its core mandate, improve on its corporate governance and become a national vehicle for maximizing the value of our oil and gas resources.
Support the growth of local competition by redeeming government obligations to the BDCs.
Address macroeconomic instability to ensure the effective implementation of the petroleum price deregulation policy.
Expand the Tema Oil Refinery (TOR) and ensure BOST reverts to its core mandate of protecting our strategic petroleum reserves.
Ensure that crude oil produced in Ghana is refined here to add value to our oil and to build a petrochemical industry as an important growth pillar for the economy
Improve on the quality of fuel produced in Ghana or imported by reviewing the standards for sulphur content in the fuels.
Facilitate, in collaboration with the private sector, the establishment of an oil refinery in Sekondi-Takoradi.
Review and further amend the Petroleum Revenue Management Act 2011 (Act 815) to support investment of revenue from oil in high-impact strategic social and economic infrastructure.
Between 2017 and 2020, primarily allocate revenue from oil to infrastructure, health, education and agriculture.
Leverage oil revenue to complete the Accra-Kumasi-Paga rail line connections and the rehabilitation of the Western and Eastern Rail Lines.
Manage and use the revenue from the Jubilee, as well as from the TEN and SANKOFA fields, in a responsible and transparent manner.